House Bill No. 14

Introduced By r. johnson

By Request of the Office of Budget and Program Planning

A Bill for an Act entitled: "An Act authorizing the creation of state debt through the issuance of general obligation bonds; appropriating the proceeds of the bonds for capital projects for the biennium ending June 30, 1999; providing for matters relating to appropriations; and providing an immediate effective date."

Be it enacted by the Legislature of the State of Montana:

NEW SECTION. Section 1.  Definitions. For the purposes of [sections 1 through 7], unless otherwise stated, the following definitions apply:

(1) "Capital project" means the acquisition of land or improvements or the planning, capital construction, renovation, furnishing, or major repair projects authorized in [sections 1 through 7].

(2) "CPF" means the capital projects fund.

(3) "Other funding sources" means money other than CPF money, including special revenue fund money, that accrues to an agency under the provisions of the law.

NEW SECTION. Section 2.  Appropriation of bond proceeds and other funds. The following money is appropriated from the CPF and other funding sources to the department of administration for the capital projects described in this section, contingent upon the respective authorization of general obligation long-range building program bonds by the 55th legislature and the sale of the bonds by the board of examiners:

Agency/Project CPF


Critical Project Requirements, Capitol Renovation $ 3,458,700

Historic Restoration, Montana State Capitol 2,281,000


Three Additional Regional Correctional Facilities 11,400,000

New Food Service/Kitchen Facility, MSP, Deer Lodge 2,150,000

Campus Expansion/Consolidation, PHS, Miles City 11,300,000

192 Bed, Infrastructure and Services Expansion and

Fire/Life Safety/Road Improvements, MSP, Deer Lodge 13,074,000

Expansion Unit and Land Acquisition, WCC, Billings 2,322,000


Replace Primary Electrical Distribution,

MSU-Billings 1,700,000

Replace HVAC System, Science Complex, UM-Missoula 1,200,000

Utility Tunnel Extension, MSU-Bozeman 5,856,000

Repair/Replace Primary Electrical Distribution,

MSU-Northern 1,000,000

Boiler Plant and Utility Distribution, UM-Dillon 1,117,000

Facility Renovation/Completion MSU-COT-GF 4,950,000

NEW SECTION. Section 3.  Authorization of bonds. The board of examiners is authorized to issue and sell general obligation long-range building program bonds in an amount not exceeding $61,808,700 for the projects described in [section 2] over and above the amount of general obligation long-range building program bonds outstanding on January 1, 1997, to be issued in accordance with the terms and in the manner required by Title 17, chapter 5, part 8. The authority granted to the board by this section is in addition to any other authorization to the board to issue and sell general obligation long-range building program bonds.

NEW SECTION. Section 4.  Planning and design. The department of administration may proceed with the planning and design of capital projects before the receipt of other funding sources. The department may use interaccount loans in accordance with 17-2-107 to pay planning and design costs incurred before the receipt of other funding sources.

NEW SECTION. Section 5.  Capital projects -- contingent funds. If a capital project is financed in whole or in part with appropriations contingent upon the receipt of other funding sources, the department of administration may not let the projects for bid until the agency has submitted a financial plan for approval by the director of the department of administration. A financial plan may not be approved by the director if:

(1) the level of funding provided under the financial plan deviates substantially from the funding level provided in [section 2] for that project; or

(2) the scope of the project is substantially altered or revised from the preliminary plans presented for that project in the 1998-99 long-range building program presented to the 55th legislature.

NEW SECTION. Section 6.  Legislative consent. The appropriations authorized in [section 2] constitute legislative consent for the capital projects contained in [section 2] within the meaning of 18-2-102.

NEW SECTION. Section 7.  Requirements for approval of state debt. Because [section 3] authorizes the creation of a state debt, a vote of two-thirds of the members of each house is required for enactment of [section 3]. If [section 3] is not approved by the required vote, [this act] is void.

NEW SECTION. Section 8.  Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 9.  Effective date. [This act] is effective on passage and approval.